Asian Markets Track Wall Street Higher

(RTTNews) - Asian stock markets are trading mostly higher on Wednesday, following the broadly positive cues from Wall Street overnight, amid sinking crude oil prices and lower treasury yields as traders see the U.S. move to isolate Iran economically in lieu of military strikes as a sign for easing of Middle East tensions. Asian markets closed mostly higher on Tuesday.

However, traders were reluctant to make more significant bets ahead of key events in the coming days, including key U.S. inflation data and US Fed Chair Kevin Warsh's debut speech at the annual Jackson Hole conference.

The US Treasury Department officially announced "Operation Economic Outcast," calling it an unprecedented, whole-of-government, economic campaign against Iran and its "enablers."

While the U.S. sanctioned nearly 60 entities, individuals, and vessels that it said "enable the Iranian regime's recklessness," traders seem relieved the Treasury stopped short of immediate secondary sanctions against other countries sustaining Iran's trade.

The New York Times reported that the U.S. is preparing to send diplomats back to embassies in the Middle East. This confirms the thought that the US is not expecting a full-scale war in the gulf in the near-future.

Australian shares are trading slightly higher on Wednesday, extending the gains in the previous two sessions, with the benchmark S&P/ASX 200 moving well above the 9,150 level, following the broadly positive cues from Wall Street overnight, with gains in mining and financial stocks partially offset by weakness in energy and technology stocks.

The benchmark S&P/ASX 200 Index is gaining 7.90 points or 0.09 percent to 9,172.50, after touching a high of 9,220.60 earlier. The broader All Ordinaries Index is up 7.20 points or 0.08 percent to 9,382.10. Australian stocks ended notably higher on Tuesday.

Among major miners, BHP Group is gaining more than 1 percent, Mineral Resources is advancing almost 1 percent and Rio Tinto is adding almost 2 percent, while Fortescue is edging down 0.3 percent.

Oil stocks are mostly lower. Woodside Energy is declining more than 4 percent, Beach energy is losing more than 2 percent and Santos is down almost 3 percent, while Origin Energy is edging up 0.4 percent.

In the tech space, Afterpay owner Block is edging up 0.2 percent, while WiseTech Global is tumbling almost 8 percent, Zip is down almost 1 percent, Xero is declining more than 4 percent and Appen is edging down 0.3 percent.

Among the big four banks, ANZ Banking is gaining almost 1 percent, while Commonwealth Bank, National Australia bank and Westpac are edging up 0.1 to 0.4 percent each.

Among gold miners, Evolution Mining, Genesis Minerals and Resolute Mining are gaining almost 2 percent each, while Northern Star Resources is edging up 0.2 percent and Newmont is adding more than 2 percent.

In other news, shares in DroneShield are tumbling almost 10 percent after reporting a loss compared to a profit last year.

Shares in Domino's Pizza are also tumbling more than 11 percent, after reporting a big loss on writedowns.

In economic news, the annual inflation rate in Australia slowed to 3.5 percent in July 2026 from 3.8 percent in June, but remained above both expectations of 3.3 percent and the central bank's 2-3 percent target range. It was the softest increase since November 2025. The trimmed mean CPI stood at 3.6 percent on year, still the highest since September 2024 and above expectations of 3.5 percent, while the weighted median CPI rose 3.6 percent, after a 3.7 percent rise in June.

On a monthly basis, the CPI rose 1.0 percent, marking the first monthly increase, surpassing expectations of a 0.8 percent rise and recording the fastest increase in four months.

In the currency market, the Aussie dollar is trading at $0.718 on Wednesday.

The Japanese stock market is trading notably higher on Wednesday after opening in the red, extending the gains in the previous session, following the broadly positive cues from Wall Street overnight. The Nikkei 225 is moving well above the 66,200 level, with gains in index heavyweights and financial stocks. Most other sectors are trading mixed.

The benchmark Nikkei 225 Index closed the morning session at 66,227.55, up 371.12 points or 0.56 percent, after hitting a low of 65,390.55 earlier. Japanese stocks ended notably higher on Tuesday.

Market heavyweight SoftBank Group is gaining almost 3 percent and Uniqlo operator Fast Retailing is edging up 0.2 percent. Among automakers, Honda is losing almost 1 percent, while Toyota is edging up 0.1 percent.

In the tech space, Advantest is gaining almost 2 percent, while Tokyo Electron and Screen Holdings are losing almost 2 percent each.

In the banking sector, Sumitomo Mitsui Financial is gaining almost 2 percent, while Mitsubishi UFJ Financial and Mizuho Financial are advancing more than 1 percent each.

Among the major exporters, Mitsubishi Electric is edging up 0.1 percent, while Canon and Sony is adding more than 1 percent each. Panasonic is edging down 0.1 percent.

Among other major losers, Sumco is tumbling almost 6 percent, Taiyo Yuden is sliding almost 5 percent and Furukawa Electric is slipping more than 4 percent, while Lasertec and Disco are declining almost 4 percent each. Murata Manufacturing, Fujikura and Ibiden are losing more than 3 percent each, while Kioxia Holdings and Nichirei are slipping almost 3 percent each.

Conversely Mitsubishi Materials is jumping almost 7 percent, Tokyo Electric Power is surging more than 5 percent, Dowa Holdings is advancing almost 5 percent, Sumitomo Metal Mining is advancing more than 4 percent and LY is rising almost 4 percent, while Mercari and Daiichi Sankyo are gaining more than 3 percent each. Meiji Holdings, Sharp and Tokio Marine are adding almost 3 percent each.

In economic news, producer prices in Japan were up 0.4 percent on month in July, the Bank of Japan said on Wednesday. That exceeded expectations for an increase of 0.2 percent following the upwardly revised 0.3 percent decline in June (originally -0.4 percent).

On a yearly basis, producer prices gained 3.6 percent - also topping forecasts for an increase of 3.2 percent and up from the upwardly revised 3.4 percent in the previous month (originally 3.2 percent). Excluding international transportation, producer prices were up 0.3 percent on month and 3.1 percent on year.

In the currency market, the U.S. dollar is trading in the higher 158 yen-range on Wednesday.

Elsewhere in Asia, New Zealand, China, Hong Kong, Malaysia, South Korea and Taiwan are higher by between 0.3 and 0.9 percent each, while Singapore and Indonesia are down 0.3 percent each.

On Wall Street, stocks gave back some ground after an early surge but maintained a positive bias throughout the trading session on Tuesday. The major averages all moved to the upside after ending the previous session mixed.

The tech-heavy Nasdaq advanced 171.11 points or 0.7 percent to 26,151.80, the S&P 500 climbed 24.42 points or 0.3 percent to 7,677.28 and the Dow rose 160.24 points or 0.3 percent to 53,577.40. Meanwhile, the major European markets closed mixed on the day. The German DAX Index climbed by 0.6 percent and the U.K.'s FTSE 100 Index increased by 0.3 percent, although the French CAC 40 Index has bucked the uptrend and dipped by 0.2 percent.

Crude oil prices plummeted Tuesday as investors saw the U.S. administration's move to isolate Iran economically in lieu of military strikes as a beginning sign for easing of gulf tensions. West Texas Intermediate crude for October delivery sank $2.83 or 3.33 percent at $82.18 per barrel.